UK Sales Increase Thanks to Scrappage

The UK joined all the other Western European countries in reporting sales growth in the new car sector for October. The sales rose an annual 31.6 percent in October, mostly helped by a government incentive scheme, said the Society of Motor Manufacturers and Traders (SMMT), according to Reuters.

This year, the British government introduced a scrappage scheme which allowed the drivers to trade their car for 2,000 pounds in order to buy a more fuel efficient model. The only condition was that the car must be more than 10 years old. This decision helped the industry, as there were 168,942 cars sold last month.

The scheme got popular very fast and the government agreed last month to boost funding for the venture to include an additional 100,000 vehicles. The funding was not all supported by the government, but the scheme was co-funded by the car industry.

"October has seen this year's biggest monthly increase in registrations with the successful scrappage scheme accounting for over 20 percent of them," said Paul Everitt, SMMT chief executive.

Germany's new-car market grew by 24 percent in October, Spanish car sales went up 26.4 percent last month, French car sales rose 20.1 percent and Italy’s car sales in October rose 15.69 percent. The German growth was not supported by the scrapping scheme as it ran out of money in September.
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